NEXIM Bank to address dearth of bankable projects, increase flow of funds to SMEs
Managing Director, Nigerian Export-Import Bank (NEXIM), Mr. Abubakar Abba Bello, has said that the Bank is at the verge of addressing dearth of bankable projects and to increase flow of funds to Small and Medium Enterprises (SMEs).
To achieve this, he stated that NEXIM is partnering with African Export-Import Bank (Afreximbank) to establish a Project Preparation Fund (PPF), through which both institutions have agreed to raise an initial amount of $50 million to support the pre-investment phase in a project preparation circle, adding that it is expected that the fund would address the dearth of bankable projects and increase the flow of funds to SMEs.
He disclosed this at an enlightenment and engagement workshop on Export for SMEs in Kaduna on the sidelines of the Kaduna International Trade Fair.
In his remarks, Bello recognized the role of SMEs in cross border trade, and the need to mainstream informal export activities, particularly within the context of the African Continental Free Trade Agreement (AfCFTA), adding that the Bank has also established an SME desk to respond specifically to the needs of small businesses.
The Bank added that under its trade facilitation role, particularly towards enhancing the competitiveness of Nigerian exporters in the regional market, it has continued to promote the regional sealink project to bridge the maritime infrastructure gap, thereby improving trade connectivity for coastal and hinterland trade.
The project is expected to boost access for Nigerian manufactured exports within the regional market, and solid minerals export globally. Bello informed that NEXIM has retooled its operations over the past four years and is now better positioned to serve the people. “The Bank, in collaboration with the Central Bank of Nigeria(CBN) is implementing the N500 billion Non-Oil Export Stimulation Facility and the N100 billion Export Development Fund which we offer at single digit interest rate to support the production and export of goods and services.
